SHKP signs 5-year HK$23 billion syndicated credit facility
Share
SHKP signs 5-year HK$23 billion syndicated credit facility
Sun Hung Kai Properties Limited (SHKP) is delighted to announce the successful signing of a 5-year term loan and revolving credit facility valued at HK$23 billion. The facility has garnered significant interest from a diverse group of 23 mainland, international and local financial institutions. The level of subscription far exceeded expectations, with the facility being oversubscribed nearly five times.
SHKP Chairman and Managing Director Raymond Kwok said: “This overwhelming response is a very strong vote of confidence in SHKP and the future of Hong Kong. We will use part of the facility’s proceeds to refinance some of our debts with the remainder held as working capital for coming business developments. This approach aligns with our prudent financial management.”
He noted SHKP holds the highest credit ratings among property companies in Hong Kong, with an A+ rating from Standard & Poor’s and an A1 from Moody’s. The Group’s dedication to developing quality and green properties, along with its premium trustworthy brand and strong reputation, is well recognized among tenants, shoppers, home buyers and the investment community.
Mr Kwok added: “Amid macroeconomic headwinds, the Group remains committed to prudent financial discipline and places a strong emphasis on cash flow management, including the implementation of strict controls on capital expenditure and continuous launching of residential projects for sale.”
He emphasized that the Group’s rental portfolio in Hong Kong has over 30 million square feet gross floor area (GFA) while the portfolio on the mainland has been expanded with the soft opening of the Group’s luxury mall in Nanjing, Nanjing IFC Mall, to about 20 million square feet GFA. The Group’s estimated net rental income is estimated to exceed HK$19.2 billion in the financial year 2023/24.
Looking ahead, there are several key projects on the horizon which will contribute to the Group’s growth, Mr Kwok added. A notable one is the mega High Speed Rail West Kowloon Terminus Development, whose office towers will be named the International Gateway Centre (IGC). In March 2024, a celebration was held marking the topping out of an entire tower of the development, that has been rented by UBS as their new Asia Pacific headquarters. Another key project is the Artist Square Towers in the West Kowloon Cultural District, which is now under development.
These projects, along with the Group’s ICC and two luxurious hotels, will form a unique commercial hub with a total of about 5.7 million square feet of premium grade-A office space. With its unparalleled location and commitment to world-class green building standards, the cluster is well positioned to serve as a prominent hub for commerce, culture, arts, retail, entertainment, and transportation in the Greater Bay Area and a place to live, work, play and learn. Furthermore, in Shanghai, construction of the final phase of International Trade Centre (ITC) is scheduled for completion in 2025. These new additions will further strengthen SHKP’s recurring income base over the next two to three years.
The Group also maintains a strong focus on delivering quality properties to achieve fast asset turnovers in its property development business. The residential market in Hong Kong has revived after removal of all property cooling measures in late February 2024. The Group’s recent launches of Cullinan Harbour in the Kai Tak runway area, YOHO Hub II in Yuen Long and Dynasty Court in Mid-Levels have been well received by the market.
Moving forward, SHKP will continue to launch new residential projects for sale as they become available, and actively market its unsold completed residential units and some of its non-core properties, ensuring a continuous cash inflow.
The facility is backed by:
- Bank of China (Hong Kong) Limited
- Oversea-Chinese Banking Corporation Limited
- Agricultural Bank of China Limited Hong Kong Branch
- DBS Bank Ltd.
- The Hongkong and Shanghai Banking Corporation Limited
- Industrial and Commercial Bank of China (Asia) Limited
- Hang Seng Bank Limited
- China Construction Bank (Asia) Corporation Limited
- China Minsheng Banking Corp., Ltd. Hong Kong Branch
- CMB Wing Lung Bank Limited
- Nanyang Commercial Bank, Limited
- Chiyu Banking Corporation Limited
- The Korea Development Bank
- Sumitomo Mitsui Banking Corporation
- BNP PARIBAS
- Mizuho Bank, Ltd.
- Standard Chartered Bank (Hong Kong) Limited
- United Overseas Bank Limited
- Taipei Fubon Commercial Bank Co., Ltd.
- Bank of Communications Co., Ltd Hong Kong Branch
- Chong Hing Bank Limited
- Citigroup Global Markets Asia Limited
- Crédit Agricole Corporate & Investment Bank
Sun Hung Kai Properties Limited (SHKP) is delighted to announce the successful signing of a 5-year term loan and revolving credit facility valued at HK$23 billion. The facility has garnered significant interest from a diverse group of 23 mainland, international and local financial institutions. The level of subscription far exceeded expectations, with the facility being oversubscribed nearly five times.
SHKP Chairman and Managing Director Raymond Kwok said: “This overwhelming response is a very strong vote of confidence in SHKP and the future of Hong Kong. We will use part of the facility’s proceeds to refinance some of our debts with the remainder held as working capital for coming business developments. This approach aligns with our prudent financial management.”
He noted SHKP holds the highest credit ratings among property companies in Hong Kong, with an A+ rating from Standard & Poor’s and an A1 from Moody’s. The Group’s dedication to developing quality and green properties, along with its premium trustworthy brand and strong reputation, is well recognized among tenants, shoppers, home buyers and the investment community.
Mr Kwok added: “Amid macroeconomic headwinds, the Group remains committed to prudent financial discipline and places a strong emphasis on cash flow management, including the implementation of strict controls on capital expenditure and continuous launching of residential projects for sale.”
He emphasized that the Group’s rental portfolio in Hong Kong has over 30 million square feet gross floor area (GFA) while the portfolio on the mainland has been expanded with the soft opening of the Group’s luxury mall in Nanjing, Nanjing IFC Mall, to about 20 million square feet GFA. The Group’s estimated net rental income is estimated to exceed HK$19.2 billion in the financial year 2023/24.
Looking ahead, there are several key projects on the horizon which will contribute to the Group’s growth, Mr Kwok added. A notable one is the mega High Speed Rail West Kowloon Terminus Development, whose office towers will be named the International Gateway Centre (IGC). In March 2024, a celebration was held marking the topping out of an entire tower of the development, that has been rented by UBS as their new Asia Pacific headquarters. Another key project is the Artist Square Towers in the West Kowloon Cultural District, which is now under development.
These projects, along with the Group’s ICC and two luxurious hotels, will form a unique commercial hub with a total of about 5.7 million square feet of premium grade-A office space. With its unparalleled location and commitment to world-class green building standards, the cluster is well positioned to serve as a prominent hub for commerce, culture, arts, retail, entertainment, and transportation in the Greater Bay Area and a place to live, work, play and learn. Furthermore, in Shanghai, construction of the final phase of International Trade Centre (ITC) is scheduled for completion in 2025. These new additions will further strengthen SHKP’s recurring income base over the next two to three years.
The Group also maintains a strong focus on delivering quality properties to achieve fast asset turnovers in its property development business. The residential market in Hong Kong has revived after removal of all property cooling measures in late February 2024. The Group’s recent launches of Cullinan Harbour in the Kai Tak runway area, YOHO Hub II in Yuen Long and Dynasty Court in Mid-Levels have been well received by the market.
Moving forward, SHKP will continue to launch new residential projects for sale as they become available, and actively market its unsold completed residential units and some of its non-core properties, ensuring a continuous cash inflow.
The facility is backed by:
- Bank of China (Hong Kong) Limited
- Oversea-Chinese Banking Corporation Limited
- Agricultural Bank of China Limited Hong Kong Branch
- DBS Bank Ltd.
- The Hongkong and Shanghai Banking Corporation Limited
- Industrial and Commercial Bank of China (Asia) Limited
- Hang Seng Bank Limited
- China Construction Bank (Asia) Corporation Limited
- China Minsheng Banking Corp., Ltd. Hong Kong Branch
- CMB Wing Lung Bank Limited
- Nanyang Commercial Bank, Limited
- Chiyu Banking Corporation Limited
- The Korea Development Bank
- Sumitomo Mitsui Banking Corporation
- BNP PARIBAS
- Mizuho Bank, Ltd.
- Standard Chartered Bank (Hong Kong) Limited
- United Overseas Bank Limited
- Taipei Fubon Commercial Bank Co., Ltd.
- Bank of Communications Co., Ltd Hong Kong Branch
- Chong Hing Bank Limited
- Citigroup Global Markets Asia Limited
- Crédit Agricole Corporate & Investment Bank
- Email media@shkp.com